IAC REPORTS Q2 2025 (Form 8-K)

IAC REPORTS Q2 2025

Dotdash Meredith rebrands as People Inc. with Q2 Digital revenue growth of 9%

IAC Q2 operating income improved $22 million and Adjusted EBITDA grew 15%

Full year 2025 Operating Income guidance of $82-$140 million and Adjusted EBITDA guidance of $247-$285 million

NEW YORK- August 4, 2025-IAC (NASDAQ: IAC) released its second quarter results today and separately posted a Q2 2025 earnings presentation on the Investor Relations section of its website at ir.iac.com.

"IAC's second quarter earnings turn the page to a new era for the industry-leading People Inc., a name that fits the way good names should: effortlessly and intuitively. With seven consecutive quarters of Digital revenue growth, People Inc. continues to build and innovate, backed by premier brands, superior technology and unmatched scale," said Barry Diller, Chairman and Senior Executive, IAC. "We may have been quiet on capital allocation this quarter but don't mistake silence for inertia. Our appetite to put our cash to work is as strong as ever, be it buying back more of our stock or going after new strategic fits that emerge. Unconstrained, we intend to do exactly as we set out to do - catalyze opportunities, optimize our assets, and unlock shareholder value."

IAC SUMMARY RESULTS
($ in millions except per share amounts)
			Q2 2025						Q2 2024						Growth
Revenue			$	586.9					$	634.4					-7		%
Operating income (loss)			0.6						(21.5)						NM
Unrealized gain (loss) on investment in MGM Resorts International			307.4						(179.3)						NM
Net earnings (loss)			211.5						(142.2)						NM
Diluted earnings (loss) per share			2.57						(1.71)						NM
Adjusted EBITDA			51.4						44.8						15		%
See reconciliations of GAAP to non-GAAP measures beginning on page 16.

Q2 2025 SUMMARY

•Dotdash Meredith is now People Inc. The company's July 31, 2025 rebrand taps the power of its flagship brand PEOPLE with a refreshed look and feel that honors its historic roots and reinforces its commitment to content -made by people for people-that delights, teaches, inspires and entertains.

◦Digital revenue increased 9% to $260 million, accelerating from 7% growth in Q1 2025, while Print revenue decreased 9% to $174 million.

◦Total operating income increased 90% to $35 million and Adjusted EBITDA increased 5% to $70 million.

◦In Q2 2025, People Inc. successfully refinanced its existing debt of $1.47 billion, extending maturities until 2030 and 2032.

•Care.com revenue was $82 million, operating income was $3 million and Adjusted EBITDA was $6 million.

•Corporate items

Page 2 of 21

◦On July 30, 2025, MGM Resorts International ("MGM") released its Q2 2025 earnings. IAC holds 64.7 million shares of MGM, which represents a 24% stake in MGM based on 272 million shares outstanding reported by MGM as of July 28, 2025.

◦IAC Corporate operating loss and Adjusted EBITDA loss were $33 million and $23 million reflecting the continued focus on reducing costs.

•See the FY 2025 outlook detail and Q3 2025 outlook commentary on page 15.

Page 3 of 21

DISCUSSION OF FINANCIAL AND OPERATING RESULTS

($ in millions, rounding differences may occur)			Q2 2025						Q2 2024						Growth
Revenue
People Inc.			$	427.4					$	425.2					1		%
Care.com			82.0						87.7						-6		%
Search			61.7						101.8						-39		%
Emerging & Other			15.9						19.9						-20		%
Intersegment eliminations			(0.0)						(0.1)						52		%
Total Revenue			$	586.9					$	634.4					-7		%
Operating income (loss)
People Inc.			$	34.8					$	18.3					90		%
Care.com			3.0						(1.0)						NM
Search			5.1						4.6						10		%
Emerging & Other			(9.2)						(6.8)						-36		%
Corporate			(33.1)						(36.7)						10		%
Total Operating income (loss)			$	0.6					$	(21.5)					NM
Adjusted EBITDA
People Inc.			$	69.6					$	66.4					5		%
Care.com			5.8						2.7						117		%
Search			5.1						4.6						10		%
Emerging & Other			(6.3)						(6.5)						3		%
Corporate			(22.8)						(22.5)						-1		%
Total Adjusted EBITDA			$	51.4					$	44.8					15		%

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People Inc.

Revenue

($ in millions, rounding differences may occur)			Q2 2025						Q2 2024						Growth
Revenue
Digital			$	260.4					$	238.1					9		%
Print			173.5						191.7						-9		%
Intersegment eliminations			(6.5)						(4.6)						-42		%
Total			$	427.4					$	425.2					1		%

•Revenue of $427.4 million increased 1% year-over-year reflecting:

◦9% Digital revenue growth driven by:

▪Advertising revenue increased 5%, accelerating from 1% growth in Q1 2025, reflecting:

•Higher premium advertising revenue due primarily to the Health and Pharmaceuticals, Technology and Travel categories

•Lower programmatic advertising revenue due to lower impression volumes driven primarily by the higher premium advertising growth and related impression consumption, partially offset by higher rates

▪Performance marketing revenue increased 14%, accelerating from 11% growth in Q1 2025, driven by 25% affiliate commerce growth, partially offset by revenue declines from services, concentrated primarily in the Finance category

▪Licensing and other revenue increased 23% due primarily to improved performance from content syndication partners and Apple News+, as well as a full quarter of OpenAI revenue (partnership began in May 2024)

◦9% Print revenue declines driven by the ongoing portfolio optimization and the continued migration of audience and advertising spend from print to digital

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Operating Income (Loss) and Adjusted EBITDA

($ in millions, rounding differences may occur)			Q2 2025						Q2 2024						Growth
Operating income (loss)
Digital			$	38.1					$	26.0					46		%
Print			11.2						5.5						102		%
Other			(14.5)						(13.2)						-10		%
Total			$	34.8					$	18.3					90		%
Adjusted EBITDA
Digital			$	63.0					$	63.4					-1		%
Print			16.7						13.2						27		%
Other			(10.1)						(10.2)						1		%
Total			$	69.6					$	66.4					5		%

•Operating income of $34.8 million increased 90% reflecting:

◦Digital operating income increased 46% to $38.1 million reflecting:

▪$11.6 million lower amortization of intangibles due to certain definite lived intangible assets that became fully amortized in 2024

▪Adjusted EBITDA declined 1% to $63.0 million due to higher cost of revenue, an increase in online marketing spend and investments in Q2 2025 related to D/Cipher+ and product (the PEOPLE app), partially offset by higher revenue

◦Print operating income increased 102% to $11.2 million reflecting:

▪Adjusted EBITDA increased 27% to $16.7 million due to lower operating expenses resulting from continued cost rationalization, partially offset by revenue declines

▪$1.4 million lower amortization of intangibles and $0.5 million lower depreciation

◦Other operating loss increased 10% to $14.5 million due primarily to $1.2 million higher stock-based compensation expense, partially offset by 1% lower Adjusted EBITDA losses

Page 6 of 21

Care.com

•Revenue decreased 6% to $82.0 million reflecting:

◦9% decrease in Consumer revenue driven by lower subscriptions on the Care.com platform

◦4% decrease in Enterprise revenue primarily driven by lower overall product utilization

•Operating income was $3.0 million compared to a loss of $1.0 million in Q2 2024 due primarily to Adjusted EBITDA increasing $3.1 million to $5.8 million reflecting:

◦$9.5 million in legal accruals in Q2 2024 related to the resolution of certain legal matters

◦Lower revenue

Search

•Revenue decreased 39% to $61.7 million reflecting:

◦39% decrease at Ask Media Group due to channel mix and an overall reduction in traffic acquisition costs driving fewer visitors to ad-supported search and content websites

◦41% decrease at Desktop (legacy desktop search software business)

•Operating income and Adjusted EBITDA both increased 10% to $5.1 million due to lower traffic acquisition costs and lower compensation costs, partially offset by lower revenue

Emerging & Other

•Revenue decreased 20% to $15.9 million reflecting:

◦$4.7 million lower IAC Films revenue

◦Flat Vivian Health revenue year-over-year, representing an improvement from the 7% decline in Q1 2025

◦14% growth from The Daily Beast

•Operating loss increased $2.4 million to $9.2 million reflecting:

◦$2.6 million higher stock-based compensation expense

◦ $0.2 million lower Adjusted EBITDA losses to $6.3 million due to reduced losses at The Daily Beast and profits at Vivian Health as compared to losses in Q2 2024, partially offset by higher legal fees related to a legacy business and losses at IAC Films as compared to profits in Q2 2024

Page 7 of 21

Corporate

Operating loss decreased $3.7 million to $33.1 million reflecting:

•$4.0 million lower stock-based compensation expense due primarily to inclusion of expense in Q2 2024 related to the former IAC CEO's restricted stock award which was forfeited on January 13, 2025

•$0.3 million higher Adjusted EBITDA losses driven primarily by higher legal fees and lower allocations due to the Angi Inc. spin-off, which was completed on March 31, 2025, partially offset by lower compensation costs

Investment in MGM

IAC holds 64.7 million shares of MGM, which were purchased for $1.3 billion, and were worth $2.3 billion as of August 1, 2025. Net earnings (loss) and diluted earnings (loss) per share reflect changes in MGM's share price as unrealized gains and losses and, as a result, can be very volatile, which reduces their ability to be effective measures to assess operating performance.

Income Taxes

The Company recorded an income tax provision of $63.0 million in Q2 2025 for an effective tax rate of 23%, which was higher than the statutory rate due primarily to state taxes. In Q2 2024, the Company recorded an income tax benefit of $40.4 million for an effective tax rate of 22%, which was higher than the statutory rate due primarily to state taxes and research credits, partially offset by non-deductible expenses.

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Free Cash Flow

For the six months ended June 30, 2025, net cash used in operating activities attributable to continuing operations was $2.7 million, a $62.8 million decrease from cash provided by operating activities attributable to continuing operations for the six months ended June 30, 2024. Free Cash Flow decreased $65.6 million to negative $11.8 million due primarily to unfavorable working capital (including $43.1 million of payments at People Inc. related to the termination of a lease) and higher capital expenditures, partially offset by higher Adjusted EBITDA.

			Six Months Ended June 30,
($ in millions, rounding differences may occur)			2025						2024
Net cash (used in) provided by operating activities attributable to continuing operations			$	(2.7)					$	60.2
Capital expenditures			(9.1)						(6.4)
Free cash flow			$	(11.8)					$	53.8

CONFERENCE CALL

IAC will host a conference call to answer questions regarding its second quarter results on Tuesday, August 5, 2025, at 8:30 a.m. Eastern Time. This conference call will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of IAC's business. The conference call will be accessible to the public at ir.iac.com along with the Q2 2025 earnings presentation and a subsequent recording of the webcast.

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LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2025:

•IAC had 79.9 million shares of common stock and Class B common stock outstanding.

•The Company had $1.1 billion in cash and cash equivalents of which IAC held $831 million and People Inc. held $263 million. The People Inc. cash balance includes $80 million of cash that had been contributed to People Inc. by the Company in June 2025 that was subsequently distributed to IAC by People Inc. in July 2025.

•The Company had $1.45 billion in long-term debt, which is the obligation of People Inc.

•IAC owned 64.7 million shares of MGM.

In Q2 2025, People Inc. successfully refinanced $1.47 billion of its then outstanding debt, extending its maturities until 2030 and 2032. The refinancing consists of the following:

•$350 million Term Loan A-1 due in 2030.

•$150 million revolving credit facility that expires in 2030 (no borrowings outstanding as of June 30, 2025 and currently has no borrowings outstanding).

•$700 million Term Loan B-2 facility due in 2032.

•$400 million 7.625% senior secured notes due in 2032.

The proceeds of the new debt financing plus cash on hand were used to repay People Inc.'s existing term loan facilities. As of June 30, 2025, People Inc. had a weighted average maturity of 6.5 years and weighted average borrowing cost of 7.4%.

As of June 30, 2025, People Inc.'s net consolidated leverage ratio defined in its credit agreement remained below 4.0x, providing IAC with increased financial flexibility.

As of August 1, 2025, IAC had 9.2 million shares remaining in its share repurchase authorization.

Share repurchases can be made over an indefinite period of time in the open market and in privately negotiated transactions, depending on those factors management deems relevant at any particular time, including, without limitation, market conditions, price and future outlook.

Page 10 of 21

OPERATING METRICS

($ in millions; rounding differences may occur)

			Q2 2025						Q2 2024						Growth
People Inc.
Revenue
Advertising revenue			$	161.2					$	153.4					5		%
Performance marketing revenue			61.1						53.5						14		%
Licensing and other revenue			38.1						31.1						23		%
Total Digital Revenue			$	260.4					$	238.1					9		%
Print Revenue			173.5						191.7						-9		%
Intersegment eliminations			(6.5)						(4.6)						-42		%
Total Revenue			$	427.4					$	425.2					1		%
Digital metrics
Total Sessions (in millions)			2,444						2,573						-5		%
Core Sessions (in millions)			2,202						2,165						2		%
Care.com
Revenue
Consumer			$	43.4					$	47.6					-9		%
Enterprise			38.6						40.1						-4		%
Total Revenue			$	82.0					$	87.7					-6		%
Search
Revenue
Ask Media Group			$	51.4					$	84.3					-39		%
Desktop			10.2						17.5						-41		%
Total Revenue			$	61.7					$	101.8					-39		%

See metric definitions on page 20

Page 11 of 21

DILUTIVE SECURITIES

IAC has various dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions; rounding differences may occur).

			Shares						Avg Exercise Price						As of 08/01/25			Dilution at:
Share Price															$	38.83		$	40.00		$	45.00		$	50.00		$	55.00
Absolute Shares as of 08/01/25			80.2												80.2			80.2			80.2			80.2			80.2
RSUs and non-publicly traded subsidiary denominated equity awards			3.8												1.2			1.2			1.2			1.2			1.2
Options			0.6						$	10.42					0.1			0.1			0.1			0.1			0.1
Total Dilution															1.3			1.3			1.3			1.3			1.3
% Dilution															1.6		%	1.6		%	1.6		%	1.6		%	1.6		%
Total Diluted Shares Outstanding															81.5			81.5			81.5			81.5			81.5

The dilutive securities presentation is calculated using the methods and assumptions described below, which are different from those used for GAAP dilution, which is calculated based on the treasury stock method.

The Company currently settles all equity awards on a net basis; therefore, the dilutive effect is presented as the net number of shares expected to be issued upon vesting or exercise, and in the case of options, assuming no proceeds are received by the Company. Any required withholding taxes are paid in cash by the Company on behalf of the employees. In addition, the estimated income tax benefit from the tax deduction received upon the vesting or exercise of these awards is assumed to be used to repurchase IAC shares. Assuming all awards were exercised or vested on August 1, 2025, withholding taxes payable by the Company on behalf of the employees upon net settlement would have been $72.5 million (of which approximately 50% would be payable for awards currently vested and those vesting on or before June 30, 2026), assuming a stock price of $38.83 and a 50% withholding rate. The table above assumes no change in the fair value estimate of the non-publicly traded subsidiary denominated equity awards from the values used at June 30, 2025. The number of shares ultimately needed to settle these awards and the cash withholding tax obligation may vary significantly as a result of the determination of the fair value of the relevant subsidiary. In addition, the number of shares required to settle these awards will be impacted by movement in the stock price of IAC.

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GAAP FINANCIAL STATEMENTS

IAC CONSOLIDATED STATEMENT OF OPERATIONS

($ in thousands except per share data)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Revenue			$	586,928					$	634,393					$	1,157,417					$	1,258,683
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)			201,971						253,351						407,254						512,818
Selling and marketing expense			185,825						177,311						366,739						365,388
General and administrative expense			117,343						126,006						180,167						253,478
Product development expense			49,826						53,380						100,039						116,623
Depreciation			7,980						9,124						19,926						21,848
Amortization of intangibles			23,408						36,710						46,941						73,438
Total operating costs and expenses			586,353						655,882						1,121,066						1,343,593
Operating income (loss)			575						(21,489)						36,351						(84,910)
Interest expense			(37,167)						(34,474)						(65,481)						(69,154)
Unrealized gain (loss) on investment in MGM Resorts International			307,437						(179,284)						(16,828)						(15,533)
Other income, net			2,828						50,123						10,516						80,444
Earnings (loss) from continuing operations before income taxes			273,673						(185,124)						(35,442)						(89,153)
Income tax (provision) benefit			(63,040)						40,432						16,194						(6,095)
Net earnings (loss) from continuing operations			210,633						(144,692)						(19,248)						(95,248)
Earnings (loss) from discontinued operations, net of tax			-						3,225						15,313						(1,247)
Net earnings (loss)			210,633						(141,467)						(3,935)						(96,495)
Net loss (earnings) attributable to noncontrolling interests			819						(765)						(1,418)						(706)
Net earnings (loss) attributable to IAC shareholders			$	211,452					$	(142,232)					$	(5,353)					$	(97,201)
Per share information from continuing operations:
Basic earnings (loss) per share			$	2.64					$	(1.74)					$	(0.23)					$	(1.14)
Diluted earnings (loss) per share			$	2.57					$	(1.74)					$	(0.23)					$	(1.14)
Per share information attributable to IAC common stock and Class B common stock shareholders:
Basic earnings (loss) per share			$	2.64					$	(1.71)					$	(0.07)					$	(1.17)
Diluted earnings (loss) per share			$	2.57					$	(1.71)					$	(0.07)					$	(1.17)
Stock-based compensation expense by function:
Cost of revenue			$	442					$	760					$	781					$	1,253
Selling and marketing expense			1,054						1,227						1,825						1,636
General and administrative expense			16,931						17,308						(5,122)						35,069
Product development expense			1,048						1,132						1,591						1,979
Total stock-based compensation expense			$	19,475					$	20,427					$	(925)					$	39,937

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IAC CONSOLIDATED BALANCE SHEET

($ in thousands)

			June 30, 2025						December 31, 2024
ASSETS
Cash and cash equivalents			$	1,093,866					$	1,381,736
Accounts receivable, net			376,192						483,020
Other current assets			131,519						125,208
Current assets of discontinued operations			-						495,072
Total current assets			1,601,577						2,485,036
Buildings, land, equipment, leasehold improvements and capitalized software, net			304,742						313,197
Goodwill			1,993,302						1,993,302
Intangible assets, net of accumulated amortization			507,532						554,473
Investment in MGM Resorts International			2,225,844						2,242,672
Long-term investments			409,574						438,534
Other non-current assets			317,824						324,901
Non-current assets of discontinued operations			-						1,336,529
TOTAL ASSETS			$	7,360,395					$	9,688,644
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Current portion of long-term debt			$	21,000					$	35,000
Accounts payable, trade			47,859						53,672
Deferred revenue			65,059						56,560
Accrued expenses and other current liabilities			424,730						509,299
Current liabilities of discontinued operations			-						231,661
Total current liabilities			558,648						886,192
Long-term debt, net			1,412,332						1,435,007
Deferred income taxes			134,824						153,850
Other long-term liabilities			291,809						372,950
Non-current liabilities of discontinued operations			-						536,257
Redeemable noncontrolling interests			25,279						25,415
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock, $0.0001 par value			8						8
Class B common stock, $0.0001 par value			1						1
Additional paid-in-capital			5,920,478						6,380,700
Accumulated deficit			(544,327)						(538,974)
Accumulated other comprehensive loss			(11,102)						(11,396)
Treasury stock			(453,966)						(252,441)
Total IAC shareholders' equity			4,911,092						5,577,898
Noncontrolling interests			26,411						701,075
Total shareholders' equity			4,937,503						6,278,973
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	7,360,395					$	9,688,644

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IAC CONSOLIDATED STATEMENT OF CASH FLOWS

($ in thousands)

			Six Months Ended June 30,
			2025						2024
Cash flows from operating activities attributable to continuing operations:
Net loss			$	(3,935)					$	(96,495)
Less: Net earnings (loss) from discontinued operations			15,313						(1,247)
Net loss from continuing operations			(19,248)						(95,248)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities attributable to continuing operations:
Amortization of intangibles			46,941						73,438
Depreciation			19,926						21,848
Net loss (gain) on sales of investments and businesses (including unrealized losses on investments)			18,845						(28,203)
Non-cash lease expense (including right-of-use asset impairments)			17,612						19,811
Unrealized loss on investment in MGM Resorts International			16,828						15,533
Net gain on lease terminations			(36,104)						-
Deferred income taxes			(18,709)						(1,714)
Stock-based compensation expense			(925)						39,937
Unrealized increase in the estimated fair value of a warrant			-						(20,393)
Other adjustments, net			8,944						(650)
Changes in assets and liabilities, net of effects of dispositions:
Accounts receivable			93,604						57,507
Other assets			(22,607)						43,610
Operating lease liabilities			(64,403)						(25,896)
Accounts payable and other liabilities			(69,620)						(51,133)
Income taxes payable and receivable			(1,354)						4,418
Deferred revenue			7,579						7,290
Net cash (used in) provided by operating activities attributable to continuing operations			(2,691)						60,155
Cash flows from investing activities attributable to continuing operations:
Capital expenditures			(9,111)						(6,360)
Distribution of Angi Inc.'s cash in the spin-off			(386,563)						-
Net proceeds from the sales of investments and businesses			9,856						162,179
Proceeds from the sale of a portion of the retirement investment fund			8,485						-
Net proceeds from sales of fixed assets			249						12,753
Proceeds from maturities of marketable debt securities			-						262,500
Purchases of marketable debt securities			-						(197,117)
Net collections of notes receivable			-						10,083
Other, net			2,663						-
Net cash (used in) provided by investing activities attributable to continuing operations			(374,421)						244,038
Cash flows from financing activities attributable to continuing operations:
Principal payments on the Term Loans			(1,425,773)						(15,000)
Net proceeds from lenders from the Term Loans refinancing			991,451						-
Proceeds from the issuance of the 2032 Notes			400,000						-
Debt issuance costs paid to third parties and deferred financing costs			(9,916)						-
Withholding taxes paid on behalf of employees on net settled stock-based awards			(54,705)						(8,928)
Purchases of treasury stock			(200,000)						-
Other, net			249						(170)
Net cash used in financing activities attributable to continuing operations			(298,694)						(24,098)
Total cash (used in) provided by continuing operations			(675,806)						280,095
Net cash (used in) provided by operating activities attributable to discontinued operations			(2,758)						88,922
Net cash used in investing activities attributable to discontinued operations			(12,499)						(25,438)
Net cash used in financing activities attributable to discontinued operations			(14,343)						(22,944)
Total cash (used in) provided by discontinued operations			(29,600)						40,540
Effect of exchange rate changes on cash and cash equivalents and restricted cash			1,610						(875)
Net (decrease) increase in cash and cash equivalents and restricted cash			(703,796)						319,760
Cash and cash equivalents and restricted cash at beginning of period			1,807,255						1,306,241
Cash and cash equivalents and restricted cash at end of period			$	1,103,459					$	1,626,001

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FULL YEAR 2025 OUTLOOK

Please find below our full year 2025 outlook. As stewards of shareholder capital, we continually evaluate investment opportunities and are prepared to diverge from our stated outlook when we identify compelling prospects that we believe will create long-term value, even if they may impact short-term results. We also acknowledge that, at times, our expectations about the future may not materialize as anticipated. With that caution in mind, here's our current outlook:

($ in millions)			FY 2025 Outlook
Adjusted EBITDA (a)
People Inc. (b)			$330-$340
Care.com			45-55
Search			12-15
Emerging & Other			(25-15)
Corporate			(115-110)
Total Adjusted EBITDA			$247-$285
Stock-based compensation expense (c)			(30-25)
Depreciation			(35-30)
Amortization of intangibles			(100-90)
Total Operating income			$82-$140

(a) Guidance assumes no future non-recurring expenses such as severance, transactions costs or non-cash lease impairments.

(b) Excludes approximately $36 million non-cash gain from a lease termination in Q1 2025.

(c) FY 2025 stock-based compensation expense reflects the net reduction in Q1 2025 of approximately $35 million of stock-based compensation expense due to the provisions of the January 13, 2025 ETA between IAC and its former CEO.

Additional Q3/FY 2025 Observations

•People Inc. - In Q3, we expect Digital revenue growth of 7%-9% and total Adjusted EBITDA between $68-$73 million. For FY 2025, we expect Digital revenue growth between 7%-10% given the ongoing volatility in the macro-economic environment.

•Care.com - In Q3, we expect revenue declines of 4%-7% and Adjusted EBITDA between $6-$10 million which reflects approximately $3 million expense related to a real estate impairment expected in the quarter.

•Search - In Q3, we expect revenue of $55-$65 million and Adjusted EBITDA of $3-$4 million.

•Emerging & Other - In Q3, we expect revenue around $16 million and Adjusted EBITDA losses between $5-$10 million. FY 2025 and Q3 2025 include certain non-recurring expenses for certain legacy businesses.

•Corporate - FY 2025 Adjusted EBITDA losses reflects severance and related expenses due to headcount reductions and several non-recurring expenses including costs related to the departure of the former IAC CEO and the Angi Inc. spin-off. Most of these expenses were recorded in Q1 2025.

Page 16 of 21

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

($ in millions; rounding differences may occur)

IAC RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

			For the three months ended June 30, 2025
			Operating Income (Loss)						Stock-based Compensation Expense						Depreciation						Amortization of Intangibles						Adjusted EBITDA
People Inc.
Digital			$	38.1					$	3.0					$	3.2					$	18.7					$	63.0
Print			11.2						0.4						1.4						3.7						16.7
Other			(14.5)						3.7						0.7						-						(10.1)
Total People Inc.			34.8						7.2						5.2						22.4						69.6
Care.com			3.0						1.2						0.7						1.0						5.8
Search			5.1						-						-						-						5.1
Emerging & Other			(9.2)						2.9						-						-						(6.3)
Corporate			(33.1)						8.2						2.0						-						(22.8)
Total			$	0.6					$	19.5					$	8.0					$	23.4					$	51.4

			For the three months ended June 30, 2024
			Operating Income (Loss)						Stock-based Compensation Expense						Depreciation						Amortization of Intangibles						Adjusted EBITDA
People Inc.
Digital			$	26.0					$	3.4					$	3.7					$	30.3					$	63.4
Print			5.5						0.7						1.9						5.1						13.2
Other			(13.2)						2.5						0.5						-						(10.2)
Total People Inc.			18.3						6.7						6.0						35.4						66.4
Care.com			(1.0)						1.3						1.0						1.3						2.7
Search			4.6						-						-						-						4.6
Emerging & Other			(6.8)						0.3						-						-						(6.5)
Corporate			(36.7)						12.2						2.0						-						(22.5)
Total			$	(21.5)					$	20.4					$	9.1					$	36.7					$	44.8

Page 17 of 21

IAC RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA (continued)

			For the six months ended June 30, 2025
			Operating Income (Loss)						Stock-based Compensation Expense						Depreciation						Amortization of Intangibles						Adjusted EBITDA
People Inc.
Digital			$	56.8					$	4.9					$	6.2					$	37.4					$	105.4
Print			19.1						0.9						2.8						7.4						30.2
Other			2.1						6.9						5.4						-						14.4
Total People Inc.			78.0						12.7						14.4						44.8						149.9
Care.com			14.7						2.2						1.4						2.1						20.3
Search			8.1						-						-						-						8.1
Emerging & Other			(14.1)						3.2						-						-						(10.9)
Corporate			(50.3)						(19.0)						4.1						-						(65.2)
Total			$	36.4					$	(0.9)					$	19.9					$	46.9					$	102.3

			For the six months ended June 30, 2024
			Operating Income (Loss)						Stock-based Compensation Expense						Depreciation						Amortization of Intangibles						Adjusted EBITDA
People Inc.
Digital			$	25.8					$	5.6					$	8.5					$	60.4					$	100.4
Print			0.4						1.2						4.4						10.2						16.2
Other			(28.8)						7.2						1.6						-						(19.9)
Total People Inc.			(2.5)						14.0						14.6						70.6						96.7
Care.com			10.7						2.7						2.9						2.9						19.1
Search			9.0						-						-						-						9.0
Emerging & Other			(27.9)						0.7						-						-						(27.1)
Corporate			(74.2)						22.5						4.3						-						(47.4)
Total			$	(84.9)					$	39.9					$	21.8					$	73.4					$	50.3

Page 18 of 21

Q3 2025 OPERATING INCOME (LOSS) TO ADJUSTED EBITDA OUTLOOK RECONCILIATION

			Q3 2025 Outlook
($ in millions)			People Inc.			Care.com			Search			Emerging & Other
Operating income (loss)			$31-$41			$3-$7			$3-$4			($11-$6)
Stock-based compensation expense			7			1			-			1
Depreciation			5			1			-			-
Amortization of intangibles			25-20			1			-			-
Adjusted EBITDA			$68-$73			$6-$10			$3-$4			($10-$5)

Page 19 of 21

PRINCIPLES OF FINANCIAL REPORTING

IAC reports Adjusted EBITDA and Free Cash Flow, which are supplemental measures to U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA is our primary segment measure of profitability; it and Free Cash Flow are among the metrics by which we evaluate the performance of our businesses, and our internal budgets are based and may also impact management compensation. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. IAC endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures, which are included in this release. Interim results are not necessarily indicative of the results that may be expected for a full year.

Definitions of Non-GAAP Measures

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements, if applicable. We believe this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.

Free Cash Flow is defined as net cash provided by operating activities attributable to continuing operations, less capital expenditures. We believe Free Cash Flow is useful to analysts and investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. For example, it does not take into account stock repurchases. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.

Non-Cash Expenses That Are Excluded from Adjusted EBITDA

Stock-based compensation expense consists of expense associated with awards that were granted under various IAC stock and annual incentive plans that are denominated in IAC common shares and expense related to awards denominated in the equity of certain subsidiaries of the Company. These expenses are not paid in cash, and we view the economic costs of stock-based awards to be the dilution to our share base; the related shares are included in our fully diluted shares outstanding for GAAP earnings per share using the treasury stock method. The Company currently settles all stock-based awards on a net basis; IAC remits the required tax-withholding on behalf of employees for net-settled awards from its current funds.

Please see page 11 for a summary of our dilutive securities, including stock-based awards as of August 1, 2025, and a description of the calculation methodology.

Depreciation is a non-cash expense relating to our buildings, equipment, leasehold improvements and capitalized software and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives, or, in the case of leasehold improvements, the lease term, if shorter.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related primarily to acquisitions. At the time of acquisition, the identifiable definite-lived intangible assets of the acquired company are valued and amortized over their estimated lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. We believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairments of intangible assets or goodwill, if applicable, are not ongoing costs of doing business.

Gains and losses recognized on changes in the fair value of contingent consideration arrangements are accounting adjustments to report liabilities for the portion of the purchase price of acquisitions, if applicable, that is contingent upon the financial performance and/or operating targets of the acquired company at fair value that are recognized in "General and administrative expense" in the statement of operations. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or the ongoing cost of doing business.

Page 20 of 21

Metric Definitions

People Inc.

Digital Revenue - Includes Advertising revenue, Performance Marketing revenue and Licensing and Other revenue.

(a) Advertising revenue - primarily includes revenue generated from digital advertisements and intent-based advertising targeting capabilities (D/Cipher+), which are sold directly to advertisers or through advertising agencies and programmatic advertising networks.

(b) Performance Marketing revenue - includes commissions generated through affiliate commerce, performance marketing services and affinity marketing channels. Affiliate commerce commission revenue is generated when People Inc.'s branded content refers consumers to commerce partner websites resulting in a purchase or transaction. Performance marketing services commission revenue is generated on a cost-per-click or cost-per-action basis. Affinity marketing programs are arrangements where People Inc. acts as an agent for both People Inc. and third-party publishers to market and place magazine subscriptions online for which commission revenue is earned when a subscriber name has been provided to the publisher.

(c) Licensing and Other revenue - primarily includes revenue generated through brand and content licensing and similar agreements. Brand licensing generates royalties from long-term trademark licensing agreements with retailers, manufacturers, publishers and service providers. Content licensing royalties are earned from our relationship with Apple News+ as well as other content use and distribution relationships, including utilization in large-language models and other artificial intelligence-related activities.

Print Revenue - Primarily includes subscription, advertising, newsstand, project and other and performance marketing revenue. Project and other and performance marketing revenue include revenue from advertising agency related revenue and customer publishing, and revenue from marketing third-party magazine subscriptions, respectively.

Total Sessions - Represents unique visits to all sites that are part of People Inc.'s network.

Core Sessions - Represents a subset of Total Sessions that comprises unique visits to People Inc.'s most significant (in terms of investment) owned and operated sites as follows:

PEOPLE			InStyle			Simply Recipes
Allrecipes			Food & Wine			Serious Eats
Investopedia			Martha Stewart			EatingWell
Better Homes & Gardens			Byrdie			Parents
Verywell Health			REAL SIMPLE			Verywell Mind
The Spruce			Southern Living			Health
Travel + Leisure

Care.com

Consumer Revenue - Consists of revenue primarily generated through subscription fees from families and caregivers, both domestically and internationally, for its suite of products and services. Consumer revenue also includes revenue generated through Care.com's comprehensive household payroll and tax support services (HomePay) as well as through contracts with businesses that advertise through its platform.

Enterprise Revenue - Consists of revenue primarily generated through annual contracts with businesses (Care for Business) (employers or re-sellers) who provide access to Care.com's suite of products and services as an employee benefit.

Search

Ask Media Group Revenue - Consists of revenue generated from advertising principally through the display of paid listings in response to search queries, as well as from display advertisements appearing alongside content on its various websites, and, to a lesser extent, affiliate commerce commission revenue.

Desktop Revenue - Consists of revenue generated by applications distributed through both business-to-business partnerships and direct-to-consumer marketing.

Page 21 of 21

OTHER INFORMATION